


Markets are entering a period where the rally themed around artificial intelligence and growth expectations are being realized. Investors are now inclined to focus on long-term and structural stories. In the current pricing environment, investors are leaning towards companies that are not only scaled but also supported by profitability and cash generation.
Companies with an expected earnings growth per share of over 25% for 2026 promise growth above the market average. (The median value for the S&P 500 is 10%). However, it is critical to assess whether this growth is supported by financial indicators. For instance, firms with an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin above the industry average can manage their operational costs more effectively compared to their competitors.
While other players in the sector typically operate with a 10% EBITDA margin, a company that can produce a 20% EBITDA margin is expected to survive even in times of crisis and increase its market share. However, it should not be forgotten that to sustain growth, positive free cash flow is also necessary. Many rapidly growing companies can face cash flow difficulties due to high investment expenditures.
Companies that can blend growth and financial quality stand out among potential firms. Especially those with more than 25% growth potential and able to retain cash after all investments have the ability to self-finance without the need for external funding. These companies, which not only grow but also have a strong financial structure, catch the attention of investors.
Considering companies with growth potential for 2026 when making investments may increase your chances of gaining profits in the future.
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